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With more than 70 per cent non-zero balance accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), Corporation Bank’s earnings from this scheme has crossed ₹2 crore.
PMJDY was launched by the Prime Minister in August 2014.
Replying to a query by a shareholder on the viability of PMJDY at the 18{+t}{+h} annual general meeting of Corporation Bank in Mangaluru on Monday, SR Bansal, Chairman and Managing Director, said the bank had outstanding balance of around ₹550 crore in PMJDY accounts as on June 29.
After deducting expenses, the bank’s earnings from the PMJDY savings bank accounts stood at around ₹2.07 crore.
He said zero-balance accounts under PMJDY accounted for 28 per cent of total accounts under this scheme with the bank, against the banking industry average of around 57 per cent.
As on March 31, the average balance in non-zero balance PMJDY accounts stood at ₹3,116 per account as against the national average of ₹2,530. The bank had opened 21.18 lakh accounts during the period.
Terming PMJDY as an opportunity, Bansal said the bank can sell various other banking products to these customers to increase its income.
He said the bank had covered the unbanked areas allocated to it under PMJDY much ahead of time. Though the target was to cover the unbanked areas by January 26, the bank had covered them by November, he said.
CASA target Some of the shareholders expressed concern over the decline in CASA (current account, savings account) share to the total deposits in the bank. The share of CASA deposits stood at 19.72 per cent during 2014-15.
Addressing their concerns, Bansal said the average CASA growth was 12 per cent during 2014-15.
Stating that the growth is not enough, he said now the bank has a General Manager exclusively to take care of CASA.
In addition to this, the bank is also mobilising accounts of employees of some of the major corporates in the country. The bank wants to reach a target of 25 per cent of CASA deposits during the current financial year, he added.
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